Police seek four suspects in bitcoin fraud investigation

The Calgary police have asked for the public's help identifying four men wanted in connection to a almost $200,000 bitcoin scam that targeted seven Canadian cities.

The fraudulent transactions occurred in Calgary, Toronto, Montreal, Ottawa, Hamilton, Winnipeg and Sherwood Park between September 16th and September 26th, 2018.

Cybercrime Team (CPS) is investigating a series of fraudulent crimes with Bitcoin ATMs that resulted in the Canadian blockchain company incurring a loss of 195,000 Canadian dollars (approximately 146,000 USA dollars). These kind of attacks are possible due to the fact that it is possible to withdraw money from a Bitcoin kiosk and remotely canceling the transaction before the company can process the withdrawal.

The cybercrime division of the Calgary Police believes that these suspected fraudsters with in-depth knowledge of bitcoin transactions successfully pulled off 112 double spend attacks over a span of ten days.

Each of the four suspects is accused of attacks in specific cities. Besides Calgary, the suspects also conducted double-spend attacks on BitcoinATMs in cities like Toronto, Montreal, Winnipeg, Ottawa, and more. Calgary police say they began investigating the matter in October 2018 after receiving a tip-off. The tools themselves weren't created for such activities, but allow for "stuck" transaction to go through using additional fees. The second double-spends that transaction with a transaction with higher fees, paying only the change address.

Law enforcement teams in Calgary are spearheading a nationwide investigation into a suspected Bitcoin fraud ring that made off with almost $200,000 in a little over a week.

Looking for the suspects, Calgary Police are being aided by other law enforcement agencies, including the Toronto Police, the Winnipeg Police Service, and more.

Individuals with any leads can submit their tips to Crime Stoppers. That is why services ask for multiple confirmations for every transaction.

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